DELL
Dell Technologies Inc
Price:  
94.59 
USD
Volume:  
5,966,971.00
United States | Technology Hardware, Storage & Peripherals
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DELL WACC - Weighted Average Cost of Capital

The WACC of Dell Technologies Inc (DELL) is 9.5%.

The Cost of Equity of Dell Technologies Inc (DELL) is 11.45%.
The Cost of Debt of Dell Technologies Inc (DELL) is 4.90%.

Range Selected
Cost of equity 9.90% - 13.00% 11.45%
Tax rate 13.70% - 16.90% 15.30%
Cost of debt 4.70% - 5.10% 4.90%
WACC 8.3% - 10.6% 9.5%
WACC

DELL WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.31 1.45
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.90% 13.00%
Tax rate 13.70% 16.90%
Debt/Equity ratio 0.37 0.37
Cost of debt 4.70% 5.10%
After-tax WACC 8.3% 10.6%
Selected WACC 9.5%

DELL's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for DELL:

cost_of_equity (11.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.31) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.